Singapore Telecom to invest Rs2,649 crore in Bharti Telecom:

Singapore Telecommunications Ltd (Singtel) will indirectly raise its stake in Bharti Airtel Ltd by investing Rs2,649 crore in Bharti Telecom Ltd, the promoter company of Airtel, through a preferential allotment of shares.

The investment comes within two years of Singtel’s participation in Bharti Telecom’s rights issue of Rs2,500 crore, which was completed in February 2016, Bharti Airtel said in a statement on Monday.

With the latest round of investment, Singtel’s total stake (along with its affiliates) in Bharti Telecom will increase to 48.9% from 47.17% currently, the statement said. The Mittal family owned Bharti Enterprises continues to hold over 50% stake in Bharti Telecom.

The transaction is subject to approval by shareholders of Bharti Telecom and the funds raised will be used towards debt reduction, the company said.

“The transaction is sentimentally positive for Airtel. It is a sign of confidence by Singtel in Airtel,” a Mumbai-based analyst said on the condition of anonymity.